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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

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More SaaS + Software Stats

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

How To Make Pricing A Constant Process In Your Organization

Software and online services are in a period of dizzying growth

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

SaaS solutions have the highest security features with 95% security failures due to human error

More Growth Strategy Stats

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

Three uses for the SaaS Guidelines

SaaS solutions have the highest security features with 95% security failures due to human error

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

54% treat upselling and add-on sales as high priority

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business